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Public Debt And Economic Growth In The South Pacific Islands: A Case Study Of Fiji

Author

Listed:
  • T.K. Jayaraman

    (Faculty of Business and Economics, The University of the South Pacific Suva)

  • Chee-Keong Choong

    (Faculty of Accountancy and Management, Universiti Tunku Abdul Rahman)

Abstract

Growing public debt of Fiji has been causing concerns all around. As part of countercyclical measures, the Government stepped up public expenditure from 2001 in response to the adverse consequences of the 2000 civilian coup, which witnessed a decline in investor confidence, resulting in a steep fall in private sector investment. Expansionary fiscal policy measures in the annual budgets of 2001 to 2004 as well as unforeseen natural disaster management expenditures have pushed the ratio of outstanding public debt to national output beyond the level of 50%. This paper seeks to examine the nexus between debt and growth in Fiji.

Suggested Citation

  • T.K. Jayaraman & Chee-Keong Choong, 2006. "Public Debt And Economic Growth In The South Pacific Islands: A Case Study Of Fiji," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 31(2), pages 107-121, December.
    • Handle: RePEc:jed:journl:v:31:y:2006:i:2:p:107-121
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    File URL: http://www.jed.or.kr/full-text/31-2/6.pdf
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    References listed on IDEAS

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    1. D. Giannaros & B. Kolluri & M. Panik, 1999. "An Empirical Analysis of The Effects of Government Spending on Capital Investment: Evidence from O.E.C.D. Countries," International Economic Journal, Taylor & Francis Journals, vol. 13(1), pages 45-55.
    2. Alberto Alesina & Silvia Ardagna & Roberto Perotti & Fabio Schiantarelli, 2002. "Fiscal Policy, Profits, and Investment," American Economic Review, American Economic Association, vol. 92(3), pages 571-589, June.
    3. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    4. Gill, Indermit & Pinto, Brian, 2005. "Public debt in developing countries : has the market-based model worked?," Policy Research Working Paper Series 3674, The World Bank.
    5. repec:hrv:faseco:3353756 is not listed on IDEAS
    6. Perotti, Roberto & Kontopoulos, Yianos, 2002. "Fragmented fiscal policy," Journal of Public Economics, Elsevier, vol. 86(2), pages 191-222, November.
    7. Paresh Kumar Narayan, 2005. "The saving and investment nexus for China: evidence from cointegration tests," Applied Economics, Taylor & Francis Journals, vol. 37(17), pages 1979-1990.
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    Cited by:

    1. Adel M. EL-MAHDY & Neveen M. TORAYEH, 2009. "Debt Sustainabiliy And Economic Growth In Egypt," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 9(1).
    2. T.K. Jayaraman & Chee‐Keong Choong, 2008. "Exchange market pressure in a small Pacific Island country: a study of Fiji: 1975‐2005," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 35(12), pages 985-1004, October.
    3. Qaiser Munir & Sook Ching Kok & Winnie Abdulnasir, 2016. "Public debt sustainability and economic growth in Malaysia: Threshold and causality analysis," Proceedings of International Academic Conferences 5306868, International Institute of Social and Economic Sciences.

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    More about this item

    Keywords

    Public Debt; Government Expenditure; Growth; Cointergration; Causality;
    All these keywords.

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H6 - Public Economics - - National Budget, Deficit, and Debt

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